Shanghai Mayor Defends Rules for Businesses in Free-Trade Zone

James T. Areddy

SHANGHAI—Shanghai's mayor defended an initial set of policies for the city's free-trade zone, acknowledging criticism of its restrictions on businesses but pledging that the rules will eventually loosen.

Yang Xiong told reporters during a rare news conference that initial restrictions planned for Shanghai's month-old free-trade zone are very preliminary. While Mr. Yang provided little insight into how the rules might evolve, he tried to tamp down expectations about financial-sector liberalization in the zone, saying financial...